Swift has introduced its blockchain-based tokenized-deposit ledger, designed to enable banks to process cross-border payments of tokenized assets at any hour, including weekends. While the technology aims to modernize the global payment landscape, financial institutions must first establish their own permissioned ledgers, wallet tools, and smart-contract capabilities before integrating with the network, according to Taurus co-founder and managing partner Lamine Brahimi.
Banks face technology requirements
Lamine Brahimi explained that banks looking to participate in Swift’s new platform must adopt three key components: a dedicated permissioned ledger compatible with Swift’s system, digital-asset wallets, and end-to-end tokenization as well as smart-contract tools. These elements are critical for seamless communication with Swift’s infrastructure and for managing the custody and movement of tokenized deposits.
Banks must build a permissioned ledger, wallet capabilities, and tokenization plus smart-contract infrastructure to connect with Swift’s blockchain-based ledger, Lamine Brahimi stated, emphasizing the need for these layers to interact efficiently with the Swift network.
This requirement signals that Swift’s new ledger is not a replacement for a bank’s internal payments technology, but rather functions as an orchestration layer for routing tokenized deposits. Swift’s system coordinates cross-border transfers around the clock; however, final settlement still depends on banks’ own established systems.
Live transactions by leading global banks
Several major banks have already carried out live tests on Swift’s blockchain-based ledger. HSBC and Standard Chartered completed the first interbank transaction using the system in August, while DBS and Citi executed weekend payments in US dollars within minutes, compared to the previous waiting period of up to two business days.
| Bank | Transaction Type | Settlement Time |
|---|---|---|
| HSBC | Interbank transfer | Minutes (including weekends) |
| Standard Chartered | Interbank transfer | Minutes (including weekends) |
| DBS | Cross-border USD payment | Minutes |
| Citi | Cross-border USD payment | Minutes |
Swift, a key provider of secure financial messaging relied on by banks for trillions in annual settlements since the 1970s, announced that 17 banks are now preparing for live tokenized-deposit transactions using the new ledger.
Brahimi noted that these new technology requirements do not represent a significant challenge for banks already operating with digital assets and stated that such institutions should transition smoothly to the new model. He also indicated his belief that Swift’s legacy dominance will likely continue.
Difference from stablecoins and market impact
By keeping tokenized deposits within bank balance sheets, Swift distinguishes its offering from stablecoins, which are typically issued outside the banking sector. This design is expected to give banks a standardized framework for 24/7 global payments without disrupting established settlement mechanisms.
Tokenized deposits until Swift’s initiative saw limited use, primarily by large institutions such as JPMorgan capable of operating on a global scale. The move to a network-based approach now enables broader participation, Brahimi observed.
Tokenized deposit systems have long existed within individual institutions, but cross-institutional transfers required an agreed standard and compatible systems on both ends. The addition of the Swift ledger aims to address these issues by offering a shared orchestration protocol.
Taurus, a digital asset custody and tokenization provider, recently integrated with Swift’s ledger in August. The company’s platform provides all three required technology layers for banks—permissioned ledger, wallet management, and smart contract tools—in an all-in-one solution, while some competitors require banks to engage multiple vendors.
The institutional nature of tokenized deposits means widespread retail use is yet to emerge. The compatibility and readiness of each participating bank’s digital infrastructure remain key to broader adoption of Swift’s new platform.
Mini dictionary: Swift is a global financial messaging network that facilitates secure cross-border payments and communications between banks worldwide, processing payments worth over $1 quadrillion each year.
While still an early-stage product, Brahimi said Swift’s blockchain ledger offers banks the option to use existing settlement rails or new tokenized-deposit mechanisms, enabling more flexibility and speed in global payments.
